SRG Housing Finance Confirms NCD Interest Payment and Principal Redemption

SRG Housing Finance Limited has confirmed the timely payment of interest and a partial principal redemption for its secured, listed Non-Convertible Debentures (NCDs) on March 24, 2026.

The company paid ₹19,51,034.84 in interest (after TDS) and redeemed ₹39,39,393.94 of principal.

Following these transactions, the outstanding principal amount for these NCDs has reduced to ₹240.30 crore.

Why the Payment Matters

Meeting its debt servicing obligations promptly is crucial for maintaining investor confidence and the company's creditworthiness. This action demonstrates SRG Housing Finance's ongoing commitment to managing its financial liabilities, even as it continues its lending operations. Successfully servicing debt helps preserve the company's access to capital markets for future funding needs.

Company Background

SRG Housing Finance, an Udaipur-based company established in 1999, operates as a housing finance company (HFC) registered with the National Housing Bank. It provides home loans for construction, purchase, and renovation, as well as loans against property, primarily targeting low- to middle-income individuals and self-employed clients in rural and semi-urban areas.

The company has a history of raising funds through Non-Convertible Debentures (NCDs). In October 2025, it secured ₹26 crore through an NCD issuance with an 11.52% interest rate, maturing in April 2031. SRG Housing Finance has made regular monthly interest payments and partial redemptions on its NCDs, as evidenced by similar transactions in January and February 2026.

As of March 31, 2025, SRG Housing Finance reported total debt of ₹584 crore and a net worth of ₹263.95 crore, with a Capital Adequacy Ratio (CAR) of 47.75%. The company's debt-to-equity ratio was high at 249.8%, and operating cash flow was negative, suggesting debt was not well covered by current operations.

Impact of Payment

The immediate outstanding principal on this specific NCD series has been reduced. The company reaffirms its commitment to timely debt repayment. Overall debt servicing capacity remains a key operational focus.

Key Risks to Monitor

• The company's debt-to-equity ratio is high at 249.8%.
• Negative operating cash flow indicates debt is not well covered by operational earnings.
• SRG Housing Finance has a low interest coverage ratio.
• The scale of operations is relatively small compared to larger peers in the housing finance sector.
• Potential shareholder dilution.
• The housing finance sector inherently carries lending risks.

Comparison with Peers

SRG Housing Finance operates within the competitive housing finance landscape, alongside entities like LIC Housing Finance, GIC Housing Finance, and Aavas Financiers. While SRG Housing Finance has met its immediate NCD servicing obligations, its financial metrics present a different picture compared to larger peers. For instance, its debt-to-equity ratio is notably high, and its operating cash flow suggests weaker debt coverage than many established players. Peers often have stronger balance sheets and better capitalisation, allowing for more robust debt management and potentially lower borrowing costs.

Key Financial Metrics

• In FY25, total debt stood at ₹584 crore, an increase from ₹491 crore in FY24.
• As of March 31, 2025, the company reported a net worth of ₹263.95 crore and a Capital Adequacy Ratio (CAR) of 47.75%.
• Gross Non-Performing Assets (GNPA) were 1.84% as of March 31, 2025.

What to Watch Next

• The final maturity date for remaining NCDs, a critical repayment milestone.
• The company's ability to sustain upcoming debt servicing obligations.
• Announcements on new debt issuances or refinancing.
• Monitoring of key financial health indicators, including debt coverage and profitability.